Plans for Highspeed Rail Project to Proceed without Delay and Losses

60 Mr Dennis Tan Lip Fong asked the Minister for Transport with the announcement of the US Department of Justice's investigations into 1MDB and the ongoing investigations by MAS, AGC and CAD of various 1MDB-related fund flows through Singapore for possible securities fraud, cheating and money laundering offences (a) whether the Government should be concerned about Bandar Malaysia as the terminus of the High Speed Rail (HSR), being a 1MDB project; and (b) what contingencies are in place to ensure that the project will proceed with no delay and losses.

Mr Khaw Boon Wan: The Singapore and Malaysia Governments signed a Memorandum of Understanding (MOU) on 19 July 2016 for the High Speed Rail project. Under the MOU, each Government takes responsibility for funding, constructing and maintaining the civil infrastructure and stations within their own countries. Therefore, the Malaysian government will be responsible for funding, constructing and maintaining the Bandar Malaysia terminus. We would not be involved.

Furthermore, we have worked out with the Malaysians a robust commercial framework and approach for joint procurement that we believe will give the best opportunity for the High Speed Rail project to be financially viable and sustainable in the long term. A bilateral committee will also be formed to oversee the cross-border aspects of the project, including to ensure adherence to timelines and minimise delays.